Banging Gavel Brews

[Kyle O'Connor]

Investment Info:

Other commercial investment investment in Tinley Park.

Purchase price: $415,000
Cash invested: $3,600,000

The Banging Gavel Team purchased the Vogt House, the only Historic Landmark in the Village of Tinley Park, IL. Originally a 3 story (+ baesment) residence built in the 1870s the Vogt House has had many owners and lives. The Banging Gavel team will take this amazing property that is at the center of the downtown district and turn it into a Brew Pub complete with a brewery in the basement, 140 seats inside on the first and second floors and an additional 140 seats outside in the beer garden.

Bangingavel.com

What made you interested in investing in this type of deal?

Banging Gavel Team needed a location to launch our brewery and knew we wanted to find a location that was unique, where we could make an impact and most importantly control the real estate.

How did you find this deal and how did you negotiate it?

Business Partner lives nearby and saw it regularly. He knew it was vacant and found out who the owner was. Negotiated from an asking price of $800,000 to $415,0000

How did you finance this deal?

This deal is very unique because we have five different forms of capital.
Founders Equity
Equity investors
Private note investors
Village incentive
SBA Bank Loan

How did you add value to the deal?

Gutt Rehabbed a run down vacant bank owned property and turned it into the centerpiece of the village's downtown.

What was the outcome?

Still working on the Construction, but once compete we will have a fully operational Brewpub

Lessons learned? Challenges?

- Don't buy a Historic Landmark
- Construction estimates mean nothing until they are indicative bids